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[BUSINESS] · Canada, United States · 33 sources

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Canada and U.S. negotiate trade concessions to avoid August 19 tariffs

Canada and the United States are engaged in intense, daily trade negotiations to avert a new round of 50% tariffs scheduled to take effect on August 19, 2026. Sources indicate that Canada is considering several concessions to reach a deal, including removing retaliatory tariffs on U.S. automobiles, addressing provincial bans on American alcohol, and potentially adjusting dairy quota allocations.

In exchange, Canada is seeking relief from existing tariffs on steel and aluminum, as well as a more comprehensive trade agreement rather than narrow, sectoral deals. Prime Minister Mark Carney has emphasized that the government seeks a global solution but noted that certain issues, such as alcohol sales, fall under provincial jurisdiction. The Quebec government has stated that American alcohol will not return to shelves until a fair agreement is reached.

The negotiations face significant internal pressure. Canadian dairy farmers have warned against any concessions to the supply-management system, stating, “Our food sovereignty is not for sale.” Additionally, the U.S. is reportedly pushing for preferential access to Canadian energy and critical minerals. While some officials report constructive meetings, the deadline remains a major point of tension as both nations work to avoid further economic escalation.

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Canada · Dominic LeBlanc · Donald Trump · Jamieson Greer · Janice Charette · Mark Carney · United States

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